New-York tribune., 1887-04-24
HENRY cLEWs AND THE ALABAMA NOTES

HE DESCRIBES HIS RELATIONS WITH THE FOURTH
NATIONAL BANK-THE COTTON EXCHANGE
TO the Editor of The Trtbuns
SIR: As there werc some matters did not touch upon
in my last AJAX to do me the favor OF
inserting the following
The Alabama bonds which have been alluded to as
being in the hands Of Butterneld Co. were there
during tho panic period to strengthen the sccoun.
which my firm had with them. As an evidences OF
this lot me say that when ButterfeM q Co. disposed
of these bonds to the State all they received In tne
stead was at tho time equal to about IL IL Genus OIL
tho dollar for the face value OF the bonds Sth 'na'
sum was found more than ample to admit OF paying
ButterGeld Co. In full notwithstanding the unpre-
codenttd depreciation the vast amount Oh otner
properties in their hands as collateral item alone
being about 100000 Of Burlington and Cedar Rapids
First Mortgage Bonds which cost my frm ABOUT 90
cents and were all charged up by Butterfeid q co.
at 30. This alone shows the enormous amount Oh Sc
curties which that firm held against the account
This account with Butterfeh Co. represented an
indebtedness Of S1,OO0,O0O against my firm ana IL
was ell paid In full out Of the securities In Their
hands tho Burlington bonds being taken at 80 the
Alabama bonds at about II IL per cenS
Of their face value and huge amount
Of other securities In the same proper
ton; thus showing the immense loss which recoied
and which only after the hardest struggle ever
fought by any firm In tho annals of the history OF
any country
No ono ever worked harder for life than tho old
firm Of Henry Clews & Co. or made bigger sacrinces
therefor. The firm held at this time S2,2oo'ooo OF
Burlington and Cedar Rapids Railroad hrst mortgage
Bonds which stood them in the way OF advances with
interest added about s5 These bonds taken Into
account by security creditors at about 30 thus MAX
ing over o million dollars entire loss to the firm, be-
sides o very considerable amount In addton as
vaiueess. stil the merits Of the burlington and
Cedar Rapids entertrso on It's reorganizatlon ma. mas
broke down during the 1873 panic and it now ranks
in Importance and value equal to almost any railroad
mcnt and arc difficult Of attainment at 100 to no.
market as s6 cents on the dollar showing that
was no error Of Judgment on my part In being 50
lt proved disastrous by force Of Of circumstance
nch b d a@ De S @ Wr hsw S h Ub
worthless SO general was tho loss OF confidence In
notes. notes were lodged With the president Of tho Fourth
National Bank and my statements do not admit OF
My firm had loans with tho Fourth National Bank
protected With ample securities prior 70 $ our a sS'pon por
sSercof s% anu Alter s % SUSPENSION S the nuSngton RAN
road Company failed because we were well KIN ,wn to
ural sequence. when my suspension was announced,
tho bonds OF that company deprecated from 30 TO 30
bonds held by the Fourth National Bank besides
other securities In their hanis which they held as
Ssses on hs s u.s. with the We oh Saos
Bank were charged up to the firms account and the
eCn weSe nsg If the Sd ss e
which T. tho usual practice with bans Thsy syr bold ca
lection or otherwise against account until 1t Is
hquidaed This will account for the Alabama notes
vised leaving the notes with the bank under any cir
cumstances, as the bank had an interest In urging
nlno the liyo power Of SO influential bank as tho
gone into qaidation When the Fourth ma Nat,9nal .na1
faco and Gf interest which now amounts with interest
TO 900. the bank will bo required Of course
gether with anv legal exrenscs to pay the bal
ancn. Then viii be the time to call uron tho Fourth
Ss cotton EachanS Seas s1casvS in pro-
ductlon Of the South: which to show its vast I'm
has therefore called together members OF the Ev-
change an immense number o. Southern men. sum.
fs3y in az s,s hs SG%S lae
ttudo acaInt the state Of Georgia; I naturally have
10 mako them an ex-rartl tribunal aralnst me. Many
of the influential members Of this Exchange. ! am
OF Geora and arc stn Identified with larrc interests
there. I could not, rea.onanly, therc,orc expect
since shc panIc Of 1s7s have been constant resi-
at Of s s e. which AGs sn.s s % t ff
81 c' sr' In R, Fs't aSd s aS
up ph nnix to from the ashes the LARGEST .the best
tho world ' have have nncty-avc clerks in In my empoy
ment who arc kcnt actively engaged In their work
day and NIGHT. NowYork since the days OF Tweed
has Judges that tho city has TO be proud Of.
and tho various courts provided for by law. II.
during these years, there any claims based upon
fraud that could be established AGAINST mo- the banl
rurt law did not Interfere with their collection and
as am known TO have made plenty OF money. why has
not taken ADVANTAGE OF the opportunity
Tho courts have heen omen all tho time. The New
York Stock EXCHANGE. whore was n member long
before tho ranfc. susnended during tho neriOd OF
my mlSfortunes. which would not have occurred II I
had not hecn rohhed by tho State OF Georgia do
not hesitate to that had IL not been for the state
OF Georgia. could-wth the m0nsv-mating facilities
nc my communicative rolled np fifty millions OF dol
lars bv this time instead Of tho few millions that
claim tn rossess.
Tho Ncw-Yorl, Stock Exchange, after n full and
thOrOuyh Investigation made by the committee OF the
Stock Exchange In reference to old matters were
unanimous In their vote for my reinstatement. The
creditors also NJ the old firm appointed n gentleman
who afterward became OF our most honoreh
fudges, Charles y. Sa-ford who at the tme was well
known to he unfrIendlv toward mo- TO make q thor
oueh and searching Investigation In relation TO all
my business affairs in behalf Of the cieditors THE
he did and he rave n decision Of the most cOmrli-
mentary character concernng my affairs and conduct
which will always bo tho pride OF my life. This he
would not have done. owing to his animosty to me-
II the facts had not romr ell~d him TO-
Thanking you for tho blindness that YOU have ev.
tended to mo in throwing your columns remain
Respectfully yours.
Fe'r- York. April %, 1887 HENRY CLEwa